Pre Sale Contract for Malta

Pre Sale Contract Template for Malta

A Pre-Sale Contract under Maltese law, known locally as a 'konvenju', is a binding preliminary agreement that establishes the terms and conditions for a future property sale. This document, governed by Chapter 636 of the Laws of Malta and related legislation, creates mutual obligations between the vendor and purchaser to execute a final deed of sale within a specified timeframe. It includes essential elements such as property details, price, payment terms, conditions precedent, and completion requirements, while incorporating specific Maltese legal requirements for property transfers and relevant consumer protection measures.

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What is a Pre Sale Contract?

The Pre-Sale Contract, known in Malta as a 'konvenju', serves as a crucial legal instrument in Maltese property transactions. This document is mandatory under Maltese law for real estate sales and must be registered with the Commissioner of Revenue within 21 days of signing. It creates a binding commitment between parties while allowing time for due diligence, property searches, and financing arrangements. The agreement typically remains valid for three months but can be extended by mutual consent. The document must comply with the Promise of Sale Agreement Act (Chapter 636) and related legislation, requiring specific formalities including notarial authentication. It protects both parties' interests by clearly defining the property, price, conditions, and timeframes while allowing necessary preparations for the final deed of sale.

What sections should be included in a Pre Sale Contract?

1. Parties: Identification of the Promise-of-Sale Vendor and Promise-of-Sale Purchaser, including full legal names, ID numbers, addresses, and marital status as required by Maltese law

2. Background: Context of the transaction, including brief property history and current ownership status

3. Definitions: Key terms used throughout the agreement, including Property, Completion Date, Deposit, Final Deed Date, and other relevant terminology

4. Property Description: Detailed description of the property including address, boundaries, measurements, and registration details as per Land Registry requirements

5. Purchase Price and Payment Terms: Total consideration, deposit amount, payment schedule, and method of payment

6. Promise of Sale: Core agreement where vendor promises to sell and purchaser promises to buy under specified conditions

7. Duration of Promise: Validity period of the konvenju and conditions for extension as per Chapter 636

8. Conditions Precedent: Prerequisites that must be fulfilled before proceeding to final deed, including permits and searches

9. Vendor's Warranties: Representations regarding property title, encumbrances, and compliance with laws

10. Completion Requirements: Steps required for final deed completion, including notary appointment and documentation

11. Default and Remedies: Consequences of breach by either party and available remedies

12. Notices: Method and addresses for formal communications between parties

13. Governing Law: Confirmation of Maltese law governance and jurisdiction

What sections are optional to include in a Pre Sale Contract?

1. Development Conditions: Used when property is under construction or requires development, specifying completion timelines and standards

2. Bank Finance Clause: Include when purchase is subject to bank financing, specifying conditions and timeframes

3. Ground Rent Redemption: Required when property is subject to ground rent (ċens) that will be redeemed

4. Third Party Rights: Necessary when there are existing tenants or other third-party rights affecting the property

5. Special Designations: Required for properties in Urban Conservation Areas or with specific planning restrictions

6. Energy Performance: Include when energy performance certificate details need to be specified

7. Agricultural Land Declarations: Required for agricultural land transactions under Maltese law

8. AIP Requirements: Include for non-resident purchasers requiring Acquisition of Immovable Property permit

What schedules should be included in a Pre Sale Contract?

1. Property Plans: Architectural plans, site plans, and measurements of the property

2. Payment Schedule: Detailed breakdown of payment installments and due dates

3. Property Inventory: List of included furnishings, fittings, and equipment if applicable

4. Land Registry Documentation: Copies of relevant Land Registry searches and plans

5. Planning Permits: Copies of relevant MEPA/Planning Authority permits and conditions

6. Title Documentation: List and copies of relevant title documents and declarations

7. Ground Rent Details: Details of any existing ground rent and redemption calculations

8. Conditions of Sale: Standard conditions applicable to the sale as per Maltese practice

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Malta

Publisher

Genie AI

Document Type

Sales Agreement

Cost

Free to use

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